I'm currently in the 28% tax bracket and just checked my withholding and realized that I'm just doing 2 allowances for 2011 (for myself and my wife).
For the 2009 tax year, I got about 5K back from the IRS and I want to stop getting the large return.
I now a have a child as well, so I should be upping to at least 3 - I think. Is there a good formula based on that 5K return number (which is consistent most years btw). that I should make that allowance number so I can break even.
I think it would be a better strategy than giving the IRS a free loan each year. Thanks!
For the 2009 tax year, I got about 5K back from the IRS and I want to stop getting the large return.
I now a have a child as well, so I should be upping to at least 3 - I think. Is there a good formula based on that 5K return number (which is consistent most years btw). that I should make that allowance number so I can break even.
I think it would be a better strategy than giving the IRS a free loan each year. Thanks!